Shutdown Day 12, no solution in sight

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QUICK FIX

The 116th Congress convenes Thursday, and the first order of business is to end the government shutdown that’s stifled operations at the Agriculture Department, FDA and many other agencies. President Donald Trump invited Republican and Democratic leaders to the White House today to discuss border security, his first meeting with Democrats since the shutdown began.

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— Nearly two weeks into the shutdown, USDA and other agencies are reaching their breaking point as major operations not considered critical grind to a halt. Democrats have a proposal to isolate the fight over Trump’s border wall from other government funding, but it’s unlikely to resolve the impasse.

— What’s on deck for food, ag and trade policy in 2019? Rules and regs on ag biotech, SNAP work waivers, GMO labeling and, possibly, dairy standards of identity. There’s also farm bill implementation, Roundup lawsuit trials, trade talks with China, Japan and the EU, and votes on the new North American trade pact. Buckle up.

— Despite failing to meet certain food safety standards, some poultry plants could still be allowed by USDA to operate processing lines at higher speeds than the current limit of 140 birds per minute.

SHUTDOWN DAY 12, NO SOLUTION IN SIGHT: House Democrats, when they take over the majority on Thursday, plan to pass legislation that would extend Homeland Security appropriations through Feb. 8 and fund other departments through September. The strategy would separate the fight over Trump’s proposed border wall from non-related spending measures for USDA, the Interior Department, EPA and many other agencies.

The Democrats’ plan would not include billions of dollars for disaster aid sought by lawmakers from Southern and Western states that were struck by hurricanes and wildfires last year, our POLITICO colleagues report.

Back to the drawing board: Senate Republicans are likely to reject the proposal, which doesn’t include any money for the border wall. Trump disparaged the plan in a tweet, saying the Democrats were “being cute as always.”

Barring a breakthrough today at the White House meeting, there’s still no clear path toward resolving a shutdown that has left some 800,000 federal workers furloughed or working without pay.

At this point in the shutdown, USDA has closed Farm Service Agency county offices, paused certain wildfire prevention activities, halted ag research grants and stopped publishing routine commodity statistics and economic projections, according to updated department guidance.

HAPPY WEDNESDAY, JAN. 2! Welcome to Morning Ag, where your host resolved (once again) to read more books this year and spend less time on his phone. Send your own resolutions, plus news or tips, to rmccrimmon@politico.com and @ryanmccrimmon, and follow the whole team @Morning_Ag.

WHAT 2019 HOLDS FOR FOOD AND AG: USDA and FDA are expected to release major food and nutrition rules this year, from biotech regulations to dairy standards of identity. Ag industry priorities like a labor fix or an infrastructure overhaul are possible, but hardly likely. Trade is certain to be a major topic on Capitol Hill, as lawmakers debate Trump’s signature trade achievement, the so-called U.S.-Mexico-Canada Agreement.

Here’s a sample of what’s on deck:

— USDA’s 2020 dietary guidelines process ramps up, with several meetings likely throughout the year to help update the government’s recommendations.

— Agriculture Secretary Sonny Perdue’s controversial plans to move ERS and NIFA out of Washington will come to a head this year, but the new House Democratic majority could try to block the relocation effort.

— USDA’s decades-old regulatory framework for biotech crops is due for an update, with a proposed rule expected early this year.

— The 2017 Census of Agriculture is scheduled to be published Feb. 21.

USDA will also move forward with its GMO labeling guidelines and its proposed rule to limit SNAP work requirement waivers for able-bodied adults without dependents, both of which were unveiled in December.

The department will start implementing the 2018 farm bill, and at least six trials related to Bayer’s weedkiller Roundup are scheduled to take place this year, beginning in February. With Democrats in charge of the House, look for congressional oversight of the Trump administration to intensify.

FASTER LINE SPEEDS DESPITE FAILED SAFETY TESTS? USDA moved early last year to allow certain poultry plants to accelerate their processing line speeds to 175 birds per minute — well above the existing federal cap of 140 birds per minute — if the plants passed salmonella testing and met other requirements.

Several plants enrolled in the program have already failed those food-safety tests. But in a recent interview with POLITICO, USDA’s Food Safety and Inspection Service indicated the plants won’t necessarily lose their ability to run faster line speeds.

The statement sparked fresh criticism from food safety advocates, who argue faster line speeds are likely to increase the risk of worker injuries and food contamination. Our Sarah Zimmerman has the story for Pros.

TRADE CORNER

BUSY 2019 FOR U.S. TRADE: This year could be decisive on multiple trade fronts. Congress will decide the fate of USMCA; Trump will continue negotiations with Beijing toward a potential longer-term agreement; and the U.S. could soon launch formal trade talks with Japan and the EU.

First up: U.S. officials head to Beijing on Jan. 7 as the two economic superpowers seek a broader trade deal before March, when the temporary truce expires. The talks (if successful) could set up a meeting between Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer.

Negotiations with Japan could begin as soon as Jan. 20, after the U.S. released its official negotiating objectives on Dec. 21, which include a call for “comprehensive market access” for American farm goods. Japanese farmers hold major political power and have long resisted opening the island nation to foreign ag products, Pro Trade’s Megan Cassella and Adam Behsudi reported.

The 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership went into effect Dec. 30 for certain member nations. Trump withdrew from the original TPP framework on his third day in office.

Pro Trade’s Doug Palmer has a list of key dates for trade watchers in 2019.

ROW CROPS

— China will allow U.S. rice imports for the first time ever, according to the country’s customs authority. It’s not clear how much brown, polished or crushed rice China will buy, Reuters reported.

— Georgia dropped about 8,000 people from SNAP benefits each month from April through October due to work requirements. That’s20 times more than during the prior six-month period. The uptick is due in part to the state’s new “Georgia Gateway” system, which has given state administrators a new way to track food stamp recipients. The Atlanta Journal-Constitution has more.

— Jair Bolsonaro was inaugurated Tuesday as president of Brazil. The far-right leader could bring his country closer to the U.S. on climate change, trade and regional security issues, but the two nations also compete over agricultural sales to China, writes Pro Trade’s Sabrina Rodriguez.

— U.S. exporters of cherries, oranges, calf skins and other goods have seen their products held up at the Chinese border and increasingly scrutinized by customs officials, even leading some shipments to rot on the docks. Megan Cassella and the South China Morning Post’s Chad Bray and Finbarr Bermingham have the story.

— In a bid to combat deforestation by favoring imports from sustainable supply chains, the EU plans to publish documents before May outlining the scope of a legislative proposal that would impose stricter rules on importing commodities like soy, beef, coffee and cocoa, POLITICO Europe’s Kait Bolongaro and Simon Marks write.

About The Author : Ryan McCrimmon

Ryan McCrimmon is an agriculture and food policy reporter and newsletter writer for POLITICO and POLITICO Pro. He was previously a tax and budget reporter for Congressional Quarterly and Roll Call, and before that he covered the Texas state legislature in Austin for the Texas Tribune. Ryan graduated from Northwestern University, where he studied journalism and Middle Eastern politics and history. He also covered Big Ten sports for the Northwestern News Network and Big Ten Digital Network. Ryan was born and raised in Charlottesville, Va.